KOCHI: The Kerala High Court has held that the New Pension Scheme (NPS) made applicable to recruits who joined State Bank of India on or after August 1, 2010, has no legal effect.
The court issued the order while disposing of the petition filed by State Banks’ Staff Union (Kerala Circle) challenging the introduction of the Defined Contributory Pension Scheme. The association also sought a directive to the SBI to admit the employees, who were recruited on or after August 1, 2010, into the existing pension scheme.
According to the petitioners, the State Bank of India Act, 1955 does not empower the Central Board of the State Bank of India (SBI) to amend the pension rules without due process of law that too with retrospective effect and further that an amendment can be brought in only in terms of the various provisions under Section 50 of the Act.
‘UNION STAND VINDICATED’
A Raghavan, general secretary, State Banks’ Staff Union (Kerala circle), in a statement, said the stand of the union is vindicated through the court judgment. “The pronouncement of the judiciary gives all of us a great relief as the union has spearheaded the case and followed it up in the best interest of protecting and preserving the hard-earned rights of the workmen.”